Bloomberg's John Authers wrote "There are three powerful forces in the world of investment that you never want to bet against: Momentum, Mean Reversion, and U.S. Exceptionalism. Heading into 2025, however,
The article from MSN Money discusses the benefits and methods of investing in foreign stocks to diversify an investment portfolio. It highlights that while U.S. stocks have performed well, international markets offer growth potential due to different economic cycles, lower valuations, and exposure to emerging markets. The piece explains how investors can get started by using American Depositary Receipts (ADRs), which allow U.S. investors to buy shares in foreign companies as if they were domestic stocks. It also mentions mutual funds and ETFs as straightforward ways to gain international exposure without the need to pick individual stocks, offering diversification across various countries and sectors. Additionally, the article touches on the importance of understanding currency risk, geopolitical risks, and the need for thorough research or consultation with a financial advisor before diving into international investments.